Hippocrates: Flexibility and scalability for a flourishing future

Along with their classic pharma wholesale operations, Hippocrates Holding currently operates 480 of their own pharmacies in Northern Italy. To keep the supply of healthcare products as secure as possible, Hippocrates invested in a state-of-the-art automated distribution center south of Milan to deliver to the pharmacies while also handling fulfillment for the company’s online pharmacy business. However, this goes hand in hand with steep requirements for the logistics system, such as major differences in order and item structure for B2B and B2C orders and consolidating a substantial number of items that are cross-docked. The KNAPP automation solution maximizes efficiency every single day while remaining scalable for the future and leaving enough room for growth.

Omnichannel fulfillment

A sophisticated union of classic pharma wholesale and online retail.

A recipe for growth

The number of pharmacies is planned to grow rapidly, and the warehouse is already set up for it.

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We found what we were looking for in KNAPP: reliable, flexible and precise automation.”

Maria Assunta Sgrò
Direttore Operations Pharma
Hippocrates Holding S.p.A.

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Efficient performance

An Evo Shuttle automated high-performance storage system optimizes the management of the entire warehouse. Meanwhile, the A-frame – the Central Belt System (CBS) with SDA ejectors – processes fast movers.

Elegantly integrated E-com

Despite specific legal requirements and wildly different order structures, e-commerce fulfillment could be smoothly integrated into the overall process.

Cross-docking

Approximately 50 percent of B2C orders include items that are cross-docked, arriving at the DC just to be added straight to an outgoing order. This required a special concept for Hippocrates’ logistics and goods management processes.

A recipe for growth

By 2030, Hippocrates will have 300 additional pharmacies. With this in mind, the automation solution was designed and developed so that it can be expanded without compromising ongoing operation.

Flexibility is a must

It’s not yet clear how the business models might develop, so the concept included a balance model. Resources can be made available where they are needed, as they are needed.

Smart work environment

People are at the heart of the distribution center. Ergonomically designed work stations, plenty of light and different tasks help create pleasant working conditions.

Die Ware-zur-Person-Kommissionierung an dem Pick-it-Easy Evo Arbeitsplatz schafft opti-male Ergonomie und Usability für Mitarbeiter sowie höchste Qualitätssicherung.

Goods-in and storage

Incoming goods arrive in cartons on pallets. After being recorded in the inventory control system, they are repacked in the pallet storage system (overstock) or decanting stations and stored in the Evo Shuttle automated storage system, which provides 8,640 storage locations.

B2B picking

Fast movers are picked automatically by the CBS A-frame with SDA ejectors, which is continually replenished from the racks with the help of RF terminals. Other items retrieved automatically from the Evo Shuttle are prepared for shipping at goods-to-person work stations of the Pick-it-Easy Evo series.

Die Anlieferung der Artikel erfolgt in Kartons auf Paletten. Nach Erfassen im Warenwirtschaftssystem werden diese im Palettenlager oder an den Decanting-Stationen umgepackt und im Evo Shuttle eingelagert.

Schnelldrehende Artikel werden automatisch am Zentralbandsystem mit SDA-Auswerfern kommissioniert

B2C picking

Items for online pharmacy orders from consumers are conveyed from different storage locations, such as the Central Belt System, Evo Shuttle and manual racks, to one of the two parafarmacia areas, where the orders are checked, packed and personalized. This procedure is required by Italian law, which stipulates that B2C orders must be completed in a separate pharmacy accessible from the outside, known as a parafarmacia.

Shipping

The shipping containers that are delivered to the pharmacies are closed fully automatically and secured with two straps. Shipping labels are also applied automatically. Then, the shipping containers are conveyed to the shipping area, where they are stacked on pallets and sent out multiple times per day.

E-commerce orders are processed in a separate shipping area, where packages are handed over to courier services.

Fördertechnik in einen der beiden Parafarmacie-Bereiche geleitet, wo die Bestellung kontrol-liert, verpackt und personalisiert wird.

Über die Fördertechnik gelangen die Versandbehälter in den Versandbereich

We work shoulder to shoulder with the KNAPP team. This is what made it possible to start up the system in such a short period of time and to operate it autonomously.

Iacopo Iacopini
CIO
Hippocrates Holding S.p.A.

Neben dem klassischen Pharmagroßhandelsgeschäft beinhaltete das Konzept maximale Flexibilität auch hinsichtlich anderer Vertriebskanäle wie zum Beispiel dem E-Com Business.

items/hour

storage locations in the Evo Shuttle

shuttles

qm storage space

order lines/day

SKUs

Proven technologies for complete success

KNAPP shuttle technologies form the backbone of scores of automation solutions in various sectors. Racks up to 30 meters high (98 ft) and multiple-deep storage provide optimal storage density and utilize space efficiently. The integrated software provides a complete overview of the inventory and furthermore controls processes such as storage and retrieval, picking, buffering and sequencing goods and orders.

Along with the Evo Shuttle, the CBS A-frame with SDA ejectors is an important component of pharmaceutical distribution. For items with a high inventory turnover rate and specific physical characteristics, Hippocrates was able to boost quality, throughput and picking performance with this space-saving system.

• Optimized order scheduling avoids artificial peaks and makes sure items are only handled once to ensure maximum efficiency
• KNAPP software connects all processes, technologies and services along the value chain
• KiSoft Analytics depicts complex warehouse processes, making it possible to derive trends and prognoses and make strategic decisions based on solid data

Shoulder to shoulder

The Hippocrates Group aims to build up their healthcare infrastructure in Italy for the long term with up to 800 of their own pharmacies. A central part of meeting this goal was creating an efficient logistics system, which required a partner who could develop a flexible, future-proof system. “KNAPP won us over with their customized approach, passion and perfectionism,” says Marco Branchini, CFO of Hippocrates Holding. For Hippocrates, the first automated distribution center with a footprint of 11,000 square meters (120,000 ft2) was a completely new experience. That made the commitment of the KNAPP team, who brought in their expertise and detailed plans right from the offer phase, all the more powerful. Marco Branchini describes the companies’ partnership as characterized by “excellence, satisfaction and trust”. He is also pleased that the new processes are running smoothly and that output has significantly increased.